The biggest feature of the market this week will be President Joe Biden's huge $3 trillion green energy and infrastructure plan.

With the ink on the $1.9 trillion stimulus package barely dry, this week sees President Biden push ahead with his $3 trillion “Build Back Better” green energy and infrastructure plan.

The Democrats got around Biden’s $1.9 trillion stimulus plan by using budget reconciliation processes, but the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source.

According to comments from Treasury Secretary Janet Yellen, “the next stimulus bill will have to be paid for through higher tax rates”. This will include an increase on the corporate tax rate from 21% to 28%, as well as significant hike on the individual tax rate for high earners.

Once the $3 trillion green energy and infrastructure bill makes its way into the economy, it’s the industrial metals that will inevitably benefit the greatest from the recovery trade. It's little wonder why traders have nicknamed Silver, Copper and the Platinum Group Metals (PGMs) – the "trillion dollar trio".

Other key events that traders will be watching closely this week include; ADP Employment Change and Jobless Claims as well as the biggest event of the week – Non-Farm Payrolls data on Friday.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

 

 

Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD clings to daily gains above 1.0650

EUR/USD clings to daily gains above 1.0650

EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.

EUR/USD News

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.

GBP/USD News

Gold holds steady at around $2,380 following earlier spike

Gold holds steady at around $2,380 following earlier spike

Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.

Gold News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price shows no signs of directional bias while it holds above  $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research. 

Read more

Week ahead – US GDP and BoJ decision on top of next week’s agenda

Week ahead – US GDP and BoJ decision on top of next week’s agenda

US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.

Read more

Majors

Cryptocurrencies

Signatures